Concession Delivery System Washington Dulles International Airport

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Concession Delivery SystemWashington Dulles
International Airport
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Background

• Airports Authority built commissary in 1992 to
  house centralized delivery system
• Prior to Westfield
• Host was master operator (operating 50 of units)
• Host ran the commissary and delivered to itself
  and other food and beverage tenants
• Westfield awarded food and beverage contract
  April 2004
• Management contract only
• Assumed responsibility for commissary operations

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Operating Conditions

• Multiple Operators
• New contract created a number of owners, each
  with only 2 or 3 locations
• Only food tenants used Commissary
• Retailers received direct deliveries from FedEx
  and UPS
• Not required to use the commissary system

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Facility Constraints

• Commissary
• On airport, landside only
• Only location with capacity to accommodate
  central deliveries
• No Loading Docks
• No freight elevators in Midfield concourse C/D
  
• Pallet deliveries broken down at Commissary and
  placed on smaller carts, or
• Unpacked on ramp at delivery points

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Commissary Services

• Deliveries at the Commissary
• Broken down
• Grouped for delivery by concourse
• All food vendors required to participate
• Only exceptions for highly perishable product,
  e.g., Dunkin Donuts.
• Contractor costs passed directly to tenants
• Based on utilization (number of cartons
  delivered)
• No Westfield mark-up
• Contract Cost 700,000 per year, estimated

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Challenges

• Adds an extra layer of occupancy costs to tenants
  that they cannot directly control
• Requires communication and coordination between
  commissary and tenants to ensure deliveries are
  promptly accepted and unpacked
• Tenants must still bear the cost of having staff
  in place to accept and unpack the shipment

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Lessons Learned

• Planning concession sales and storage space is
  key to efficient deliveries and storage
• Lack of loading docks or dedicated delivery
  spots, and lack of freight elevators, makes
  deliveries and unpacking more time consuming
• increases the amount of time that food remains
  out of temperature controlled environment
• Increases potential for ramp traffic conflict

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Lessons Learned

• Storage space needs to be large enough to
  accommodate and unpack deliveries.
• Close coordination required between commissary
  and tenants to ensure properly acceptance and
  unpacking of deliveries
• Documentation of delivery and acceptance is
  critical

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Lessons Learned

• Having a central commissary facilitates screening
  of product where deliveries arrive from
  street-side.
• A commissary large enough to accept all product
  deliveries before distribution to individual
  locations will be critical to any implementation
  of 100 product screening.